Framework for Assessing Economic, Environmental and Social Value of Monitoring Systems: Case Water Balance Management in Mining Sector

Mining industry is highly dependent on the state of its assets, and it
is also a significant water user and producer of wastewater. Thus, the management of water-related assets and operations is a critical business issue and has an effect both on the growth and profitability in mining companies. Moreover, digitalization influences asset management processes, and implementation of novel IIoT technologies for water balance management are vital for sustainable mining business. However, investments in water-related IIoT technologies must be carefully planned and evaluated to deliver immediate and long-term benefits, to enhance the asset utilization, and to reduce the environmental risk. This research presents an asset management framework and related tool: Framework for assessing Economic, Environmental and Social Value of Monitoring System (FEES). FEES defines the customer value of the water balance system and supports the economic, environmental and social impact and risk assessment in mining sector, and demonstrates the costs and risks as well as the benefits achieved by a potential customer. The paper contributes to the asset management research field by providing a multidimensional approach to assess water-related investments in mining industry. From a long-term perspective, applying a multidimensional approach to the assessment generates several benefits, including advancing the ability to communicate the value of water-related investments to business ecosystem, local societies, people, investors and other stakeholders as well as to support the goal of sustainable growth. The proposed model provides practitioners with the opportunity to adopt a proactive approach to assess water balance system’s value.